Double Taxation Avoidance Treaties
All Mauritian double taxation avoidance treaties are based on
the OECD Model Treaty of 1977. Under the post-independence
treaties concluded so far, tax sparing is available. This implies
that where Mauritian source dividends are exempt from tax under
the tax incentive provisions, the foreign investor is entitled to
credit a notional amount of Mauritian tax against the tax payable
(if any) in his country, thus reducing his domestic tax liability.
Tax Treaties in force or under negotiation
So far Mauritius has concluded 34
tax treaties and is party to a
series of treaties under
negotiation. The treaties currently
in force are given in the table
below:
A summary of the features of the Double Taxation Avoidance Treaties
Most of
the treaties in force have been in
existence as from the period when
Mauritius launched its global
business sector in 1992.
7
treaties await ratification with:
|
Bangladesh |
Malawi |
Nigeria |
|
Russia |
Zambia |
State of
Qatar |
|
Vietnam |
|
|
6
treaties are being negotiated with:
Canada, Czech Republic, Egypt,
Greece, Portugal and Republic of
Iran.
Highlight of Tax Treaties
|
Country |
Minimum Duration to constitute
permanent establishement |
Maximum Tax Rates applicable in
the State of Source |
|
|
Building Site etc
|
Furnishing of services |
Dividends |
Interest* |
Royalties |
|
Barbados |
> 6
months |
- |
5% |
5% |
5% |
|
Belgium |
> 6
months |
- |
5%
& 10% |
10% |
Exempt |
|
Botswana |
> 6
months |
6
months |
5%
& 10% |
12% |
12.5% |
|
China |
>
12 months |
12
months |
5% |
10% |
10% |
|
Croatia |
>
12 months |
- |
Exempt |
Exempt |
Exempt |
|
Cyprus |
>
12 months |
9
months |
Exempt |
Exempt |
Exempt |
|
France |
> 6
months |
- |
5%
& 15% |
same rate as under domestic law |
15% |
|
Germany |
> 6
months |
- |
5%
& 15% |
same rate as under domestic law |
15% |
|
India |
> 9
months |
- |
5%
& 15% |
same rate as under domestic law |
15% |
|
Italy |
> 6
months |
- |
5%
& 15% |
same rate as under domestic law |
15% |
|
Kuwait |
> 9
months |
- |
Exempt |
Exempt |
10% |
|
Lesotho |
> 6
months |
6
months |
10% |
10% |
10% |
|
Luxembourg |
> 6
months |
- |
5%
& 10% |
Exempt |
Exempt |
|
Madagascar |
> 6
months |
- |
5%
& 10% |
10% |
5% |
|
Malaysia |
> 6
months |
- |
5%
& 15% |
15% |
15% |
|
Mozambique |
> 6
months |
6
months |
8%,
10% & 15% |
8% |
5% |
|
Namibia |
> 6
months |
6
months |
5%
& 10% |
10% |
5% |
|
Nepal |
> 6
months |
6
months |
5%,
10% & 15% |
10%
& 15% |
15% |
|
Oman |
> 6
months |
- |
Exempt |
Exempt |
Exempt |
|
Pakistan |
> 6
months |
- |
10% |
10% |
12.5% |
|
Rwanda |
>
12 months |
12
months |
Exempt |
Exempt |
Exempt |
|
Senegal |
> 9
months |
9
months |
Exempt |
Exempt |
Exempt |
|
Seychelles |
>
12 months |
6
months |
Exempt |
Exempt |
Exempt |
|
Singapore |
> 9
months |
- |
Exempt |
Exempt |
Exempt |
|
South Africa |
> 9
months |
- |
5%
& 15% |
Exempt |
Exempt |
|
Sri
Lanka |
> 6
months |
6
months |
10%
& 15% |
10% |
10% |
|
Swaziland |
> 6
months |
6
months |
7.5% |
5%
|
7.5% |
|
Sweden |
> 6
months |
- |
5%
& 15% |
15% |
15% |
|
Thailand |
> 6
months |
6
months |
10% |
10%
& 15% |
5%
& 15% |
|
Tunisia |
>
12 months |
- |
Exempt |
2.5% |
2.5% |
|
Uganda |
> 6
months |
4
months |
10% |
10% |
10% |
|
United Arab Emirates |
>
12 months |
12
months |
Exempt |
Exempt |
Exempt |
|
United Kingdom |
> 6
months |
- |
10%
& 15% |
Same rate as under domestic law |
15% |
|
Zimbabwe |
> 6
months |
- |
10%
& 20 % |
10% |
15% |
* Where
interest is taxable at rate provided
in the domestic law of the State of
source or at reduced treaty rate,
provision is usually made in the
treaty to exempt interest receivable
by a Contracting State itself, its
local authorities, its Central
Bank/all banks carrying on bona fide
banking business and any other
financial institutions as may be
agreed upon by both Contracting
States.
Further
information is available on the web
pages of the
Mauritius Revenue Authority.
|
